Basics of Banking In India PDF: Check Meaning, Terms, Fundamentals, Types, And Accounts For Interview
Jul 10 2024
Basics Of Banking In India: A Bank is a licensed financial institution that accepts deposits from the public people and advances loans. In most countries, banks are regulated by the national government or the Central Bank. Banks provide countless functions like deposits, withdrawals, currency exchange, forex trading, and wealth management. Banks act as a link between depositors and borrowers. Banks use the cash deposited by the customers to give credit facilities to needy people who want to borrow.
Banks vary in different sizes from small, community based institutions to global commercial banks. Banks make a profit by charging interest rates on loans. This profit is earned by charging a higher interest rate than the interest rate they pay to customer deposits. These interest rates must agree with the regulations set by the national government or the Central bank.
Click the below link to download the Basics of Banking In India PDF in Hindi and English.
Basics Of Banking In India PDF in English |
Basics Of Banking In India PDF in Hindi |
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Banking History in India PDF Download
Banking Fundamentals
In India, Banks are classified into various types which have their own advantages and disadvantages in their activities. Each bank has a specific set of audiences. Some bank works in both rural and urban sectors while some focus mainly on the rural sector. The majority of the banks provide services in big cities and major towns. Bank plays a major role in the banking industry and an important function in the economy. The bank directs the needs of trade, industry, and farm funds. A country's growth mainly depends on the development of banking. Many sectors do deposit mobilization and credit disbursement through banks. Mobilizing resources and allocating them efficiently banks play an important role in the poor countries.
About Regional Rural Banks in India - Complete List
Types of Bank Accounts
The basics of Banking also include types of bank accounts and their features. The various types of bank accounts are as follows,
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Savings Account
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Current Account
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Recurring Deposit Account
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Fixed Deposit Account
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Salary Account
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DEMAT Account
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NRI Account
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To know the complete details of types of bank accounts click the link provided below.
Details of Types of Bank Accounts in India
Types of Banks and their Functions
When it comes to the basics of banking, the types of banks and their functions play a major part. Here we have provided the complete details of the types of banks and their functions. Candidates can check the given information for their preparation for upcoming competitive examinations.
Click the below link to learn the types of banks and their functions and roles.
Check the Types of Bank, Functions in India
Payments Bank is one of the Types of Banks in India. Here we have provided the link to know the Payments Bank in India in detail.
Payment Banks in India - Eligibility, List, and their Headquarters
Internet Banking / E-Banking
Internet banking is an electronic payment system where the customer of the bank, businesses, or other financial institutions conducts transactions through the website in online mode. Internet banking is also known as e-banking, online banking, or virtual banking. Internet Banking involves the customers to access their bank accounts through an electronic medium.
E-banking involves various advantages and disadvantages. The main advantage is that customers need not visit the bank branch often as the transaction is done online. With the availability of the Internet, digital banking services are easy for customers. E-banking is developing faster among bankers and customers as it involves hassle free services. Internet banking involves less human error as certain details are only entered by humans. The customers need not have to visit the bank branch for every transaction. This saves more time and money for the customers. E-banking breaks the geographical barrier for money transactions.
The disadvantages include disruption in technology, lack of personal security concerns, etc.
Types of E-banking Services
Let us discuss the forms of e-banking and their services.
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ATM (Automated Teller Machine)
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Electronic Clearing Service
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Smart Cards
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Debit Cards
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Mobile Banking
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Internet Banking
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Tele Banking
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Door-step Banking
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Basic Banking Terminologies and Abbreviations
The basics of banking include certain banking terminologies and their abbreviations. Here we have provided some of the banking terminologies and their abbreviations in detail.
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ACF - Account Credit Facility
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AD - Authorised Dealer
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ADB - Asian Development Bank
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ADR - American Depository Receipt
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AFS - Annual Financial Statement
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AIRCSC - All India Rural Credit Survey Committee
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ALM - Asset Liability Management
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ASSOCHAM - Associated Chambers of Commerce and Industry of India
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ATM - Automated Teller Machine
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BG - Bank Guarantee
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BIS - Bank for International Settlements
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BoP - Balance of Payments
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BSCS - Basel Committee of Banking Supervision
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BSR - Basic Statistical Returns
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CAD - Capital Account Deficit
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CAG - Controller and Auditor General of India
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CASA - Current Account Savings Account
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CBS - Core Banking Solution
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CC - Cash Credit
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CD - Certificate of Deposit
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CR Ratio - Credit Deposit Ratio
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CF - Company Finance
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CFRA - Combined Finance and Revenue Accounts
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CGRA - Currency and Gold Revaluation Account
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CGTMSE - Credit Guarantee Fund Trust for Micro and Small Enterprises
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CIBIL - Credit Information Bureau (India) Limited
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CII - Confederation of Indian Industry
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CO - Capital Outlay
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CP - Commercial Paper
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CPI - Consumer Price Index
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CR - Capital Receipts
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CRAR - Capital to Risk-Weighted Asset Ratio
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CRR - Cash Reserve Ratio
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CVC - Central Vigilance Commission
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DBOD - Department of Banking Operations and Development
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DCB - Demand Collection and Balance
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DCCB - District Central Co-operative Bank
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DCM, RBI - Department of Currency Management, RBI
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DD - Demand Draft
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DEIO - Department of External Investments and Operations
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DGCI&S - Directorate General of Commercial Intelligence and Statistics
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DI - Direct Investments
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DICGC - Deposit Insurance and Credit Guarantee Corporation of India
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DID - Discharge of Internal Debt
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DMA - Departmentalized Ministries Account
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DRI - Differential Rate of Interest Scheme
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DSBB - Dissemination Standards Bulletin Board
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DVP - Delivery Versus Payment
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ECB - External Commercial Borrowing
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ECB - European Central Bank
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ECGC - Export Credit and Guarantee Corporation
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ECS - Electronic Clearing Service
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EDMU - External Debt Management Unit
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EEA - Exchange Equalization Account
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EEC - European Economic Community
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EEFC - Exchange Earners Foreign Currency
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EFR - Exchange Fluctuation Reserve
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EMI - Equated Monthly Installments
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EXIM Bank - Export Import Bank of India
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FCA - Foreign Currency Assets
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FCCB - Foreign Currency Convertible Bond
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FCNRB(B) - Foreign Currency Non- resident (Banks)
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FCNRA - Foreign Currency Non Resident Account
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FCNRD - Foreign Currency Non Repatriable Deposit
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FDI - Foreign Direct Investment
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FEMA - Foreign Exchange Management Act
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FI - Financial Institution
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FICCI - Federation of Indian Chambers of Commerce and Industry
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FII - Foreign Institutional Investor
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FIMMDA - Fixed Income Money Market and Derivatives Association of India
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FISIM - Financial Intermediation Services Indirectly Measured
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FLAS - Foreign Liabilities and Assets Survey
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FOF - Flow of Funds
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FPI - Foreign Portfolio Investment
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FRA - Forward Rate Agreement
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FRN - Floating Rate Note
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GDP - Gross Domestic Product
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GDR - Global Depository Receipt
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G-Sec - Government Securities
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IBRD - International Bank for Reconstruction and Development
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IDRBT - Institute for Development and Research in Banking Technology
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IEPF - Investors Education and Protection Fund
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IFSC - Indian Financial System Code
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IFC - Indian Financial Corporation
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IFCI - Industrial Finance Corporation of India
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IIBF - International Institute of Banking and Finance
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IIBI - Industrial Investment Bank of India
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IFC - International Finance Corporation
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IFR - Investment Fluctuation Reserve
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IIP - Index of Industrial Production
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IMF - International Monetary Fund
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IMPS - Immediate Payment Service
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IP - Interest Payment
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IRAC - Income Recognition Asset Classification
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ISDA - International Swaps and Derivative Association
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ISO - International Standards Organisation
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KYC - Know Your Customer
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KVP - Kisan Vikas Patra
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KVIC - Khadi and Village Industries Corporation
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LAF - Liquidity Adjustment Facility
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LAS - Loans and Advances by States
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LC - Letter of Credit
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LDB - Land Development Bank
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LERMS - Liberalised Exchange Rate Management System
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LFAR - Long Form Audit Report
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M1 - Narrow Money
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M3 - Broad Money
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MA - Moving Average
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MCA - Ministry of Corporate Affairs
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MIGA - Multilateral Investment Guarantee Agency
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MOC - Memorandum of Changes
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MSS - Market Stabilisation Scheme
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MUDRA - Micro Units Development & Refinance Agency Ltd
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NABARD - National Bank for Agriculture and Rural Development
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NBFC - Non Banking Financial Companies
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NEC - Not Elsewhere Classified
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NECS - National Electronic Clearing Service
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NEER - Nominal Effective Exchange Rate
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NEFT - National Electronic Fund Transfer
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NFA - Non Foreign Exchange Assets
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NFD - Net Fiscal Deficit
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NHB - National Housing Bank
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NIF - Note Issuance Facility
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NPA - Non Performing Assets
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NPV - Net Present Value
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NSSF - National Small Savings Fund
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OD - Overdraft
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OECD - Organisation for Economic Cooperation and Development
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OLTAS - Online Tax Accounting System
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PACS - Primary Agricultural Credit Societies
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PD - Primary Deficit
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PLR - Prime Lending Rate
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RD - Revenue Deficit
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RE - Revenue Expenditure
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REER - Real Effective Exchange Rate
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RIB - Resurgent India Bonds
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RLA - Recoveries of Loans and Advancements
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RTC - Repayment of Loans to Centre
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RoC’s - Registrars of Companies
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RR - Revenue Receipts
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RRB - Regional Rural Bank
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RTGS - Real Time Gross Settlement
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RTP - Reserve Tranche Position
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RUF - Revolving Underwriting Facility
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RWA - Risk Weighted Asset
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SCARDB - State Co-operative Agriculture and Rural Development Bank
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SCB - State Co-operative Bank
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SCB - Scheduled Commerical Bank
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SDDS - Special Data Dissemination Standards
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SDR - Special Drawing Right
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SEBI - Securities Exchange Board of India
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SFC - State Financial Corporation
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SIDBI - Small Industries Development Bank of India
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SIDC - State Industrial Development Corporation
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SLR - Statutory Liquidity Ratio
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SMG - Standing Monitoring Group
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SNA - System of National Accounts
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SWIFT - Society for Worldwide Interbank Financial Telecommunications
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TB’s - Treasury Bills
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TC - Temporary Change
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TT - Telegraphic Transfer
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UCN - Uniform Code Number
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UPI - Unified Payments Interface
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UTI - Unit Trust of India
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UTR number - Unique Transaction Service number
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WPI - Wholesale Price Index
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YTM - Yield to Maturity
Basics of Banking: FAQs
Q. What are the basic banking services?
A. The basic banking services include accepting deposits, granting loans, payment and remittance services, overdraft, currency exchange, locker, money transfer, etc.
Q. What is the full form of ATM?
A. Automated Teller Machine is the full form of ATM.
Q. What is the full form of PLR?
A. Prime Lending Rate is the full form of PLR.
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